India GDP Growth Could Accelerate To 7.5% In 2015-16: World Bank

GDP growth in India is expected to accelerate to 7.5 percent in Fiscal Year 2015/16, the World Bank has said in a release.

"It could reach 8.0 percent in FY2017/18, on the back of significant acceleration of investment growth to 12 percent during FY2016-FY2018.

The country is attempting to shift from consumption- to investment-led growth, at a time when China is undergoing the opposite transition," the World Bank has noted.

According to it driven by a strong expansion in India, coupled with favorable oil prices, economic growth in South Asia is expected to accelerate.

"The region is among the greatest global beneficiaries from cheap oil, as all countries in it are net oil importers. In the last quarter of 2014 South Asia was already the fastest-growing region in the world, a World Bank report said.

"Capital inflows to India have increased from 1.9 to 3.4 percent of GDP, although more volatile portfolio investments account now for a greater share of the total. "

It further noted that the decline in oil prices has been reflected in the domestic prices of oil products to different extents across the region.

The pass-through exceeded 50 percent for most oil products in Pakistan, but was nil in Bangladesh.